F5 Networks completed its internal review of past stock option grants and found that the recorded grant dates for certain stock options granted during fiscal years 1999 through 2004 should not be relied upon as the measurement date for accounting purposes. The accounting treatment used for the vesting of certain stock options was incorrect.
Based on its analysis, F5 will be required to record an additional non-cash, stock-based compensation expense of approximately $22.9 million, in the aggregate, for fiscal years 1999 through 2006. The company said it has spent approximately $7.0 million in legal and accounting fees related to this inquiry.
F5 also announced that for the fourth quarter of fiscal 2006, its revenue was $111.7 million, up 12 percent from $100.1 million in the prior quarter and 39 percent from $80.6 million in the fourth quarter of fiscal 2005. Fourth quarter net income was $17.8 million ($0.43 per diluted share) compared to net income of $17.0 million ($0.41 per diluted share) in the prior quarter.
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